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Do you have a credit card(s)? Are you
planning to get one? Credit cards are very easy to
get these days but not very easy to manage. You should
remember that the interest that you pay on a general
credit card balance is more then a normal home loan
rate.
Credit cards generally give you up to 55 days
interest free to payoff your purchase costs, some credit
cards do not have any annual fees. Credit cards can be a
very good tool if you can payoff the balance each month
before the due date and only keep the balance going in a
rare emergency.
If used properly credit cards can be a
great convenience and can also help you save a lot of
transaction costs which a lot of banks charge on normal
savings accounts. Some credit cards give additional
facilities such as purchase warranties, free gas,
airline miles etc.
If you are getting behind payments cut
back on your recreational costs, call the credit
card company and work out a payment schedule. Your
priority should be to payoff this bad debt as soon as
possible.
Try and maintain a positive credit
history.
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